The holiday quarter is critical for retailers and can account for up to 40 percent of their annual revenue.
"We are thrilled with our performance this holiday season that reflects an accelerating trend across all parts of our business, and we look forward to continued momentum in 2018 and beyond," Lululemon Chief Executive Laurent Potdevin said in a statement.
The company had forecast net revenue of $870 million to $885 million when it had reported third-quarter results in December.
Vancouver-based Lululemon expects earnings of $1.24 to $1.26 per share, up from its previous forecast of $1.18 to $1.21.
On an adjusted basis, it raised its earnings forecast to between $1.25 and $1.27 per share.
Lululemon will report fourth-quarter results on March 27.
(Reporting by Nivedita Bhattacharjee; Editing by Savio D'Souza)